Mr. Sokhie Puar reports
CANDELARIA MINING ANNOUNCES $8.6 MILLION PRIVATE PLACEMENT AND AGREEMENT FOR DEBT CONVERSION
Candelaria Mining Corp. is offering up to 80 million common shares of the company at a price of 10 cents per share for total proceeds of up to $8-million in a private placement.
The company is also offering up to $600,000 (U.S.) of unsecured convertible notes. The notes will bear interest at 6 per cent annually, paid monthly, and will be convertible into common shares of the company for a period of 18 months at six cents per share.
The proceeds from the private placements will be used for general working capital and as a reserve for future mineral property acquisitions. A finder's fee may be paid in connection with the private placement.
In addition, Candelaria has obtained the agreement of Credipresto SA to the grant of a conversion right of $500,000 (U.S.) of principal loan amount into shares of Candelaria at a price of five cents per share. The conversion would be triggered upon Candelaria completing both the exercise of the option to acquire a 60-per-cent interest in Minera Apolo SA de CV, and the acquisition of the remaining 40-per-cent interest in Minera Apolo.